QQQM vs VYM
Invesco NASDAQ 100 ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. QQQM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | QQQM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.04% | |
| AUM | $105.5B | $81.6B | |
| Dividend Yield | 0.46% | 2.24% | |
| Holdings | 107 | 616 | |
| YTD Return | +16.28% | +14.66% | |
| 1Y Return | +26.31% | +22.16% | |
| 3Y Return (annualized) | +25.84% | +18.72% | |
| 5Y Return (annualized) | +14.87% | +12.18% | |
| Volatility (annualized) | 20.2% | 14.6% | |
| Max Drawdown | -35.0% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 13, 2020 | Nov 10, 2006 |
QQQM vs VYM Performance
Invesco NASDAQ 100 ETF (QQQM) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year QQQM returned +26.31% while VYM returned +22.16%. Year to date, QQQM is up 16.28% versus a gain of 14.66% for VYM.
Over three years, QQQM compounded at +25.84% per year against +18.72% for VYM; over five years the annualized figures are +14.87% and +12.18% respectively. Across the full 6-year window we track, QQQM has the edge at +16.98% annualized vs +7.01%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQM has been the more volatile fund, with annualized monthly volatility of 20.2% compared with 14.6% for VYM. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -35.0% for QQQM and -58.8% for VYM. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQM charges 0.15% per year while VYM charges 0.04%. On a $10,000 position that is $15 vs $4 annually, a gap of $11 per year that compounds over a long holding period. On income, QQQM currently yields 0.46% against 2.24% for VYM.
Holdings Overlap
QQQM and VYM share 28 holdings out of 678 unique holdings combined, representing a 15.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQM or VYM?
QQQM has an expense ratio of 0.15% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, QQQM or VYM?
Over the past year QQQM returned +26.31% vs +22.16% for VYM, so QQQM leads on 1-year performance. Over the longest common window we track (6 years), QQQM annualized +16.98% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, QQQM or VYM?
QQQM has been the more volatile fund at 20.2% annualized versus 14.6% for VYM. Worst drawdown: QQQM -35.0% vs VYM -58.8%.
Should I hold both QQQM and VYM?
QQQM and VYM have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQM and VYM?
QQQM and VYM share 28 common holdings with a 15.6% weight overlap. Combined, they hold 678 unique securities.
Which pays a higher dividend, QQQM or VYM?
QQQM yields 0.46% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.